PANews reported on May 5th that, according to The Defiant, Polygon Labs launched a stablecoin privacy payment feature in its consumer wallet on Monday. This feature, developed in partnership with the privacy protocol Hinkal, currently supports USDC and USDT.

It has been reported that the Polygon wallet now features a "Privately Send" option, allowing users to send stablecoins from Polygon via the Hinkal shielded pool. The sender, receiver, and transfer amount are not publicly disclosed on the blockchain. The transfer will be verified using zero-knowledge proofs; external observers can confirm that a valid transfer has occurred, but cannot view the participants or the amount.

Polygon Labs stated that this feature is designed for institutional payment scenarios and aims to address the issue of excessive transparency in public blockchain payments. The design also includes built-in Know Your Transaction (KYT) screening and is a non-custodial model, meaning that no operator holds user assets during the transfer process.